Unilever Plc · LSE:ULVR
Unilever — Q3 2016 Earnings Presentation
22 slides from Unilever's earnings presentation, Oct 13, 2016
Slide 1: Unilever Trading Statement Q3 2016
Unilever Trading Statement Q3 2016 Graeme Pitkethly/Andrew Stephen October 13th 2016
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This announcement may contain forward-looking statements, including ‘forward-looking statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’, ‘vi
Slide 3: Volatile markets
Volatile markets Weak consumer confidence Commodities recovering Currencies mixed Consumer Confidence Commodity price trend USD Exchange rate vs. USD Index Index Index 105 170 Palm Oil 100 India Brent Crude UK Brazil LAB Aluminium 100 60 100 Jan 2016 Sep Jan 2016 Sep Last 2 years Source: OECD
Slide 4: Growth on track against 3-5% target
Growth on track against 3-5% target 6 5 Underlying Sales Growth % 4 3 5.7% 4.9% 4.7% 4.7% 2 3.2% 2.8% 2.9% 1 0 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16
Slide 5: All four categories growing ahead of their markets
All four categories growing ahead of their markets + 5.6% + 4.8% Unilever USG% + 4.2% 2016 YTD Market Growth + 2.1% 2016 YTD Personal Care Foods Home Care Refreshment
Slide 6: Personal Care: Innovating to grow the core and build premium
Personal Care: Innovating to grow the core and build premium Grow the core High-growth segments Build premium Global Naturals Muslims Premium ranges Prestige Local Male grooming
Slide 7: Foods: Innovating to drive volume growth
Foods: Innovating to drive volume growth Accelerate emerging markets Modernise portfolio Preserve value Iron-fortified Knorr Natural meal-makers Separate business model Re-positioning margarine Extended Hellmann’s range
Slide 8: Refreshment: Innovating in premium and high-growth segments
Refreshment: Innovating in premium and high-growth segments Build premium High-growth segments Premium gelato Speciality tea Naturals Dairy free Magnum innovation Minis
Slide 9: Home Care: Innovating to grow margin & scale household care
Home Care: Innovating to grow margin & scale household care New benefits Emerging needs Stain removers and pre-treaters Reduced water usage Purifiers Air purifiers Plant-based Concentrated Improved cleaning power
Slide 10: Category summary
Category summary All four categories growing ahead of their markets Future proofing our portfolio: 1. Innovating in high-growth segments 2. Supplemented with bolt-on acquisitions
Slide 11: Unilever Trading Statement Q3 2016
Unilever Trading Statement Q3 2016 Graeme Pitkethly/Andrew Stephen October 13th 2016
Slide 12: Asia / AMET / RUB – price increasing but weaker demand
Asia / AMET / RUB – price increasing but weaker demand USG 5.0% 3.9% South East Asia: continued volume-driven growth Price Africa and Turkey: price-driven growth 2.0% 3.3% India: weaker markets, commodity-driven Volume / Mix price increases 2.9% 0.6% China: stock reduction from channel shift
Slide 13: Latin America – slowing consumer demand as expected
Latin America – slowing consumer demand as expected USG 12.9% 9.7% Continued price growth to recover devaluation-led cost increases Price 15.3% 15.5% Market volumes contracting sharply from lower consumer disposable income Volume / Mix -2.0% -5.0% Strong comparator in Q3’15: +5% volume 9 month
Slide 14: North America – further improvement in growth
North America – further improvement in growth USG 1.2% 2.1% Growth balanced between volume and price Led by deodorants, dressings and ice cream 1.2% Price 0.5% Re-shaped portfolio and investment in brands 0.7% 0.9% and manufacturing starting to deliver returns Volume / Mix 9 months Q3
Slide 15: Europe – still challenging
Europe – still challenging USG -0.3% -1.1% Continued volume growth in most countries 1.2% Volume / Mix 0.0% Strong price competition in UK tea & laundry -1.1% Price -1.5% Net revenue management helping to mitigate price deflation 9 months Q3
Slide 16: Q3 2016: Turnover maintained at €13.4 billion
Q3 2016: Turnover maintained at €13.4 billion €13.4bn +3.2% +0.2% (3.4%) €13.4bn 2015 USG% M&A FX 2016
Slide 17: Unilever Trading Statement Q3 2016
Unilever Trading Statement Q3 2016 Graeme Pitkethly/Andrew Stephen October 13th 2016
Slide 18: Building agility and resilience: key initiatives
Building agility and resilience: 3 key initiatives Net Revenue Management Connected 4 Growth Zero Based Budgeting
Slide 19: Zero Based Budgeting
Zero Based Budgeting Benchmarking examples Programme timing Market Promotional Consultants Travel research re-pack H1 2016: Visibility phase Peer range Median Q3 2016: Value targeting Best in class Value targeting Q4 2016 – 2018: Implementation
Slide 20: Building agility and resilience: savings delivery
Building agility and resilience: savings delivery Net Revenue Management Connected 4 Growth Savings of at least €1bn Zero Based Budgeting by 2018 Underpinning competitive growth and steady margin improvement
Slide 21: On track to deliver our objectives in 2016
On track to deliver our objectives in 2016 Volume growth ahead of our markets Steady and sustainable improvement in core operating margin Strong cash flow
Slide 22: Unilever Trading Statement Q3 2016
Unilever Trading Statement Q3 2016 Graeme Pitkethly/Andrew Stephen October 13th 2016